Payroll management is never easy or enjoyable for many managers and employers. However, it is a statutory requirement for running a company in China, and comes with so many demands. As an employer, you have to understand and strictly adhere to the Chinese Labor Contract Law, which dictates when the payments of staff should be processed, mandatory deductions and the penalties for non-compliance.
There are two main ways of payroll management in a company. One, you can use an in-house team, and two; the company can go for payroll outsourcing. In most cases, making the decision to outsource is a dilemma because of the “perceived” element of costs. This post outlines the main benefits to anticipate from China payroll service, and answers the big question, “When should you outsource?”
What are the Main Advantages of Using China Payroll Service?
The most notable benefit of using China payroll service is that your work is done by experts, yet you do not need to employ them. The agency you select comes with the best professionals, which means that the task will be handled in line with the best international practices. Other benefits include:
- Helps to keep the cost associated with processing payroll low.
- Saves you time to work on other areas of company operations.
- The experts can train your staff on key areas of HR management.
- Leverages technology to give your company a competitive advantage on the market.
- Gives you the confidence of compliance to payroll-related laws.
- Makes scaling business and continuity smooth.
Important Sings that Show You Need to Outsource Payroll Service
If you notice one or several of the mistakes that we have listed below, know that it is time to go for the China payroll service.
- You Keep Making Mistakes When Processing Payroll
Making payroll mistakes in China can be pretty expensive. Apart from costs, there is a risk of getting into trouble with staff and government agencies. Note that the penalties for failing to pay staff or wrong payments depend on the respective province. For example, if you fail to pay an amount of more than RMB 5,000, the Higher People’s Court in the province can describe a fine, jail term, or both.
Note that the term salary covers every payment that the staff is entitled to under the contract law, including base salary, stipends, bonuses, commissions, reimbursements, and payments for overtime.
- The Time Used to Process Payroll is Too Much
As a manager or employer, the bulk of your time should be directed at the areas that can help to grow revenue. Good examples include product development, market studies, marketing, and financial analytics. Therefore, if you find that payroll management is taking too much time, go for expert assistance.
The good thing about China payroll service offered by experts is they specialize in related matters. Therefore, the task is completed professionally, allowing you to focus on other core areas of business operations.
- Maintaining Payroll Management Software is Challenging
To accurately manage your payroll, it is important to have the right software. However, maintaining the applications in top-notch conditions can be a major challenge for most people. Remember that if you do not run on the latest updates, there is a risk of getting attacked by cybercriminals. Now, you can say goodbye to software-related challenges by working with the best China payroll service.
The payroll management agency you outsource comes with the latest programs, and you can count on it to accurately calculate staff salaries, backup the information, and reduce the risk of cyber-attacks.
Other signs that you should check include challenges in maintaining compliance and growing staffing costs. To address these challenges, consider working with Primasia, one of the best China payroll service firms. The agency can also help you with tax matters, accounting, and company registration in China.